A Chinese bank clerk shows off US five dollar notes among the stacks of 100 Yuan notes. (file photo)
Australia’s Treasury plans to discuss direct exchange of the Australian dollar with the Chinese Yuan for the two countries trade transactions, during high-level talks in Beijing this week.
I will discuss" the potential for direct convertibility at some stage in the future between the Australian dollar and the RMB for transactions completed in mainland China, without pricing through the US dollar,” Australian Treasurer Wayne Swan said on Wednesday.
Swan said that Australia backs China's Yuan to become an international currency and a more freely convertible staple of the global financial system.
"It represents China's move toward a freely traded currency and toward a fully integrated economy that will very soon lead the world," he added.
Swan heads to Beijing on Thursday for a three-day visit.
China has given the semi-autonomous southern city of Hong Kong the task of becoming the global centre of offshore Yuan business, aiming to have 30 percent of foreign trade settled in Yuan by 2015
Britain and Singapore are also competing to become an international Yuan trading centre after Hong Kong.
China also started direct currency trading with Japan in June, a move expected to save about 3 billion dollars in annual costs tied to using the US dollar in trade transactions.